For the first time ever, the SEC said it has distributed morethan $2 billion to investors who lost money through a number ofillegal schemes.
|In 2009, distributions to injured investors have been made in 31cases brought by the commission involving illegal conduct rangingfrom accounting fraud to pump-and-dump schemes to mutual fundmarket timing. Among the distributions this year were more than$840 million to approximately 257,000 injured AIGinvestors, more than $320 million to approximately two millioninjuredinvestors in Alliance Capital mutual funds, and more than $240million to approximately 700,000 injured BearStearns investors.
|The SEC reached the $2 billion milestone with the Nov. 20distribution of more than $40 million related to an illegal latetrading scheme involving Ritchie Capital Management, the agencysaid.
|In 2002, the Sarbanes-Oxley Act authorized the SEC to createfunds, called Fair Funds, comprised of both civil penalties andill-gotten gains that could be returned to defrauded investors.Approximately $6.6 billion has been distributed.
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